COP29 proposed imposing taxes on cryptocurrencies and plastics to generate climate finance, potentially raising USD 41 billion annually. These levies are aimed at high-polluting industries, with specific rates suggested: 0.1% to 20% on cryptocurrency transactions and 5% to 7% on plastics. The proposals seek to ensure that funding mechanisms are equitable and sustainable.
The recent discussion at the World Climate Change Conference (COP29) highlighted innovative proposals to fund international climate initiatives through taxes on cryptocurrencies and the plastics sector. The Global Solidarity Levies Task Force presented findings indicating a potential annual revenue generation of USD 41 billion from these high-emission industries. Proposed taxation ranges from 0.1% to 20% on cryptocurrency transactions and a specific tax on electricity consumption associated with Bitcoin mining. Furthermore, a tax on plastics could yield an estimated USD 25 to 35 billion annually, promoting sustainable practices.
The need to increase climate finance is urgent, particularly in the Global South, where the impacts of climate change are most profound. Current discussions around global climate aid focus on the identification of new financial streams. The Global Solidarity Levies Task Force, composed of representatives from France, Kenya, and Barbados, advocates for these levies to ensure equitable resources for vulnerable nations. The proposed taxes are not only aimed at generating funds but also at steering industries towards more environmentally friendly practices.
Implementing taxes on cryptocurrencies and plastics could significantly enhance climate financing, addressing both environmental impact and economic equity. The suggestions from COP29 aim to transition the funding landscape from voluntary contributions to systematic and impactful mechanisms.
Original Source: www.ipsnews.net
